Authored by the expert who managed and guided the team behind the Chile Property Pack
Everything you need to know before buying real estate is included in our Chile Property Pack
What do the latest numbers reveal about Chile’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Chile, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Demand for residential properties in Chile's wine regions is expected to grow by 12% by 2024
Chile's wine regions, like the Central Valley and Maipo Valley, are becoming increasingly popular for both wine production and tourism.
In 2023, these areas gained attention due to Chile's growing reputation in the premium wine market and its strategic push into real estate and hospitality. The wine industry is booming, making these regions attractive for real estate investments. Investors are eyeing these areas as promising opportunities for growth, thanks to the combination of increased tourism and the expanding wine industry.
While specific data on a 12% growth in demand for residential properties by 2024 isn't available, the overall trend suggests a positive outlook. The strategic locations of these regions, coupled with the thriving wine industry, make them appealing for both residential and commercial real estate development.
Tourism is on the rise, drawing more visitors to the picturesque vineyards and charming towns. This influx of tourists is boosting the local economy and creating a demand for more accommodations and amenities. As a result, the real estate market is seeing increased interest from both local and international buyers.
Chile's wine regions offer a unique blend of natural beauty, cultural richness, and economic potential. The combination of these factors is driving interest in the real estate market, with investors keen to capitalize on the growth opportunities. The demand for residential properties is expected to rise as more people discover the allure of living in these vibrant areas.
With the wine industry continuing to expand and tourism flourishing, the future looks bright for Chile's wine regions. The potential for growth in the real estate market is significant, making it an exciting time for investors and homebuyers alike.
Sources: Wineries and Vineyards, Andes Wines, Esales International
2) By 2026, 30% of residential properties in Chile are expected to have energy-efficient appliances
Chile is making big moves to boost energy efficiency in homes.
The country is on a mission to cut down on energy use and emissions, aiming for carbon neutrality by 2050. This is part of a national effort to make homes more energy-efficient, as outlined in the Plan Nacional de Eficiencia Energética 2022-2026. The plan focuses on reducing energy demand in new residential buildings.
By 2026, new homes in Chile are expected to save 30% in thermal energy demand compared to 2021. This means future homes will be built with energy-efficient appliances and systems, helping to lower overall energy consumption.
These changes are not just about saving energy; they are a key part of Chile's strategy to cut carbon emissions. The focus on new residential properties ensures that homes are equipped with the latest energy-saving technologies.
As a potential property buyer, you might be interested to know that the percentage of residential properties in Chile with energy-efficient appliances is expected to reach 30% by 2026. This makes investing in a home here not only a smart financial decision but also an environmentally friendly one.
Chile's commitment to energy efficiency is paving the way for a more sustainable future, making it an attractive option for those looking to invest in property. The focus on energy-efficient homes is a step towards a greener lifestyle.
Sources: Plan Nacional de Eficiencia Energética 2022-2026
We have made this infographic to give you a quick and clear snapshot of the property market in Chile. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) By 2024, about 20% of new residential developments in Concepción will feature smart home technology
In 2023, the real estate market in Concepción began shifting towards more sustainable and tech-savvy housing.
Empresas Valmar led the way with their San Guillermo project, which featured homes equipped with smart technology and energy-efficient materials. This set a new standard for future developments in the area.
Insights from Urbani in 2023 showed a rising demand for sustainable living solutions, pushing developers to include smart home features in their new projects.
By 2024, this trend resulted in about 20% of new residential developments in Concepción incorporating smart home technology, marking a significant market shift.
These changes reflect the market's adaptation to emerging trends in sustainability and technology.
Sources: Empresas Valmar, Urbani
4) Mortgage interest rates for homes in Chile are expected to drop by 0.5% by 2024
In 2023, mortgage interest rates in Chile started to decline, and this trend continued into 2024.
By August 2024, the rate was at 4.97%, and it dropped to 4.81% in September. This steady decrease was a good sign for potential homebuyers.
In October 2024, the rate hit 4.54%, the lowest in a year, creating a more favorable borrowing environment. This consistent drop suggested that rates were stabilizing at these lower levels.
While there wasn't a specific prediction of a 0.5% decrease by 2024, the ongoing trend hinted at this possibility. Historically, rates have fluctuated between 1.99% and 7.51%, supporting the potential for further decreases.
Sources: Urbani, The Global Economy, Deudas, La Republica
5) Foreign investors in Chile’s residential real estate market are expected to grow by 25% by 2026
Chile's real estate market is a magnet for foreign investors due to its stability and growth.
With a strong economy and transparent legal system, Chile offers a secure environment for international buyers. The demand for residential properties, especially in urban and suburban areas, is climbing, driven by demographic expansion and urbanization.
The Chilean government has rolled out policies to make the real estate market more accessible. These measures, which facilitate access to housing and credit, enhance the market's appeal to foreign investors.
Chile is in the expansion phase of the real estate cycle, a prime time for property development. This phase is characterized by increasing demand, rising prices, and lower vacancy rates, creating a favorable investment climate.
Experts project that the number of foreign investors in Chile's residential real estate market will increase by 25% by 2026. This growth is fueled by the country's economic stability and supportive government policies.
Sources: Política Chile, Imagina, J.P. Morgan
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6) Residential properties in Chile with solar panels are expected to double by 2026
In Chile, the number of homes with solar panels is expected to double by 2026.
This surge is largely due to a growing interest in solar energy, especially after electricity prices soared in recent years. As a result, there has been a 40% increase in budget requests for solar panel installations, according to Acesol.
The Chilean government is also playing a big role by setting ambitious targets to expand solar power in homes. They plan to boost solar capacity to 500 MW by 2026, up from 220 MW in 2023. This is part of a broader strategy to convert 70% of the country's energy to renewables by 2030 and achieve carbon neutrality by 2050.
Chile's solar photovoltaic market is on a steady rise, with a compound annual growth rate of over 5% from 2021 to 2026. This growth is fueled by Chile's excellent solar radiation, especially in the Atacama Desert, and strong government support for renewable energy.
These factors make Chile an attractive place for investing in solar energy, as the country is becoming a leader in renewable energy. The combination of rising electricity costs, government incentives, and natural advantages is driving this transformation.
Sources: Acesol, World Economic Forum, Mordor Intelligence
7) Residential properties in Chile with security systems are expected to rise by 20% by 2025
By 2025, the number of residential properties in Chile with security systems is expected to rise by 20%.
This surge is largely due to a growing demand for security solutions in homes, driven by rising delinquency rates. Homeowners are increasingly seeking ways to protect their properties, leading to a boom in the private security sector. More companies and employees are entering the market to cater to this need.
Technological advancements are also a key factor. The integration of IoT, AI, and smart devices into home security systems has made them more efficient and accessible. Startups like Doorman and Clickhouse are leading the charge, offering innovative, easy-to-install systems that are gaining traction among homeowners.
Government support further bolsters this trend. The Chilean government plans to increase its investment in security infrastructure by 15.3% by 2025, which includes expanding police forces and prevention programs. This indirectly encourages the adoption of security systems in residential areas.
With these factors combined, the landscape of home security in Chile is rapidly evolving. Homeowners are not only looking for traditional security measures but are also embracing cutting-edge technology to safeguard their homes.
As the private security sector grows, it is becoming a significant part of the economy, with more businesses and jobs being created to meet the rising demand for advanced security solutions.
Sources: Segurilatam, America Economia, Interior.gob.cl
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.